Loan growth at the Philippines’ major banks slowed to a four‑month low in June, reflecting cautious borrowing by firms and weaker consumer demand amid a challenging macroeconomic backdrop.
Outstanding loans at universal and commercial banks rose 9.8% year‑on‑year to P14.882 trillion, down from a 12.1% increase in May and marking the slowest annual expansion since February.
Lending to resident borrowers increased 10.3% to P14.593 trillion, accounting for the bulk of total loans but also registering a slower pace than the 12.6% rise recorded in May.
Loans for resident production activities reached P12.545 trillion, a 9.2% gain over the previous year, yet this growth lagged behind the 11.7% jump seen in May.
The slowdown was most evident in key sectors such as construction, education and other services, where lending growth moderated despite continued demand.
Business‑related loans were driven by sustained activity in real estate, utilities, wholesale and retail trade, vehicle repair, manufacturing, transportation, storage, and agriculture.
Consumer loans totaled P2.048 trillion, up 17.8% year‑on‑year but slower than the 19% increase recorded the month before, indicating a more measured pace of household borrowing.
Credit‑card balances rose 24.9% to P1.294 trillion, while motor‑vehicle loans grew 8.6% to P540.118 billion, both reflecting decelerated growth compared with May.
Salary‑linked loans reached P177.994 billion, up 9.9% from a year earlier and outpacing the 6.4% rise observed in the prior month.
Loans to non‑resident borrowers fell 10.2% to P288.935 billion, a larger decline than the 8.3% drop recorded in May.
Domestic money supply (M3) expanded 10.6% year‑on‑year to P20.51 trillion in June, marking the slowest growth since February and a 0.7% month‑on‑month decline on a seasonally adjusted basis.
The slowdown in M3 growth was attributed to reduced credit activity, although borrowing by both private and public sectors remained the primary driver of liquidity expansion.
Domestic claims rose 10.9% to P23.464 trillion, easing from a 13.3% increase in May, with private‑sector claims up 11.7% year‑on‑year.
Government net claims grew 12.9% to P6.326 trillion, reflecting issuance of debt securities and withdrawal of deposits to finance public spending.
Net foreign assets in peso terms increased 4.1% to P7.028 trillion, while banks’ net foreign asset positions contracted, indicating a shift in external balances.
The central bank reaffirmed its commitment to align bank lending and domestic liquidity with its price stability and financial‑system resilience objectives.
